Pakistan Extends PIA Privatization Bid Deadline to June 19

Pakistan has extended the deadline for expressions of interest (EoI) to purchase a controlling stake in Pakistan International Airlines (PIA) to June 19, citing Eid ul Adha holidays as a reason for the extension. This privatization effort is part of a broader $7 billion IMF-backed reform program aimed at reducing fiscal deficits and reforming loss-making state enterprises. To attract investors, the government has introduced incentives such as GST exemptions on new aircraft and has moved PIA’s legacy debt off the airline’s balance sheet, presenting a 'net-zero balance sheet' to potential buyers. The airline recently reported its first annual profit in over two decades, bolstering its appeal to investors. The privatization process excludes government-to-government sales, and roadshows in the Middle East are planned to attract international bidders. This attempt follows a failed privatization effort last year, which received only one undervalued bid, and the government hopes the current, cleaner transaction structure will succeed.